Danielle Chiesi http://www.businessinsider.com/category/danielle-chiesi
en-usSun, 18 Feb 2018 00:31:12 -0500Sun, 18 Feb 2018 00:31:12 -0500The latest news on Danielle Chiesi from Business Insiderhttp://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.pngBusiness Insiderhttp://www.businessinsider.com
http://www.businessinsider.com/cringeworthy-wall-street-quotes-2013-623 Cringeworthy Quotes That Wall Streeters Probably Wish Were Never Made Publichttp://www.businessinsider.com/cringeworthy-wall-street-quotes-2013-6
Sun, 02 Jun 2013 11:40:00 -0400Julia La Roche
<p><img style="float:right;" src="http://static4.businessinsider.com/image/513d11afeab8ea026c000013-400-300/screen shot 2013-03-10 at 7.04.43 pm.png" border="0" alt="Paul Tudor Jones" /></p><p>No matter how many times embarrassing Wall Street emails, conversations, or tirades get made public, it never seems to stop.&nbsp;</p>
<p>Even the most respected Wall Streeters can put their foot in their mouths from time to time at events such as investor days or panels at colleges and universities. &nbsp; &nbsp;</p>
<p>So we've decided to compile a rundown of Wall Street's most embarrassing words they probably wish were never made public.</p><h3>'That's why I'm richer than you.' </h3>
<img src="http://static4.businessinsider.com/image/5047666a69bedd322800001d-400-300/thats-why-im-richer-than-you.jpg" alt="" />
<p><p><span>JPMorgan's CEO&nbsp;</span><a href="http://www.businessinsider.com/blackboard/jamie-dimon" class="hidden_link">Jamie Dimon</a><span>&nbsp;told&nbsp;</span><a href="http://www.businessinsider.com/blackboard/clsa" class="hidden_link">CLSA</a><span>&nbsp;bank analyst Mike Mayo during the bank's Investor Day why he's richer than him.&nbsp;</span><span><br /></span></p>
<p style="padding-left: 30px;"><strong>Mayo:</strong>&nbsp;<a href="http://www.businessinsider.com/blackboard/ubs" class="hidden_link">UBS</a>&nbsp;is required to have 10 percent common equity and they've chosen to have 13 percent common equity because they say it's a competitive advantage. Their customers appreciate that. So how much higher would you go above 9.5 percent? And would you view higher capital as a competitive advantage?</p>
<p style="padding-left: 30px;"><strong>Dimon:</strong>&nbsp;You know, so here's a company I've run with higher capital my entire life. Ok so [when] we went into this crisis we were at 7 percent Basel I, which was higher than most other people. And I do this chart ... 7 percent quarter by quarter '08, '09, never went down. It was clearly adequate for us. The equivalent of that 7 today is 14. So 9.5 Basel 3 is the is equivalent to 14 under Basel 1. Double. I personally think it's plenty of capital. ... We have to meet the regulator requirement and we want you to be completely comfortable. I personally think they'd be comfortable the way we are today.</p>
<p style="padding-left: 30px;"><strong>Mayo:</strong>&nbsp;I think what I hear UBS saying in the presentation is that if I'm an affluent customer I'll feel a lot better going to UBS if they have 13.5 capital ratio than another big bank with a 10 percent ratio. Do you agree with that?&nbsp;</p>
<p style="padding-left: 30px;"><strong>Dimon:</strong>&nbsp;You would go to UBS and not JPMorgan?</p>
<p style="padding-left: 30px;"><strong>Mayo:</strong>&nbsp;I didn't say that. That's their argument.&nbsp;</p>
<p style="padding-left: 30px;"><strong>Dimon:</strong>&nbsp;<span style="color: #ff0000;"><strong>That's why I'm richer than you.&nbsp;</strong></span></p>
<p><span style="background-color: #ffffff; color: #c0c0c0;"><a href="http://www.businessinsider.com/dimon-tells-mike-mayo-why-hes-richer-2013-2"><span style="background-color: #ffffff; color: #c0c0c0;"><em>Source: Business Insider</em></span></a></span></p></p>
<br/><br/><h3>'We will kill him. The jail sentence will be worth it.' </h3>
<img src="http://static3.businessinsider.com/image/4a9d66aeff47005617ac84bf-400-300/we-will-kill-him-the-jail-sentence-will-be-worth-it.jpg" alt="" />
<p><p><span>"If anyone at Cerberus has his picture in the paper and a picture of his apartment, we will do more than fire that person. We will kill him. The jail sentence will be worth it," Cerberus's Stephen Feinberg told shareholders back in 2007.</span></p>
<p><span></span><span><span style="color: #c0c0c0;"><a href="http://www.rollingstone.com/politics/news/greed-and-debt-the-true-story-of-mitt-romney-and-bain-capital-20120829?page=4"><span style="color: #c0c0c0;"><em>Source: Rolling Stone</em></span></a></span><br /><br /><br /></span></p></p>
<br/><br/><h3>'As soon as that baby's lips touched that girl's bosom, forget it.' </h3>
<img src="http://static3.businessinsider.com/image/513d11afeab8ea026c000013-400-300/as-soon-as-that-babys-lips-touched-that-girls-bosom-forget-it.jpg" alt="" />
<p><p>Paul Tudor Jones speaking on a panel at the University of Virginia on why women will never be as successful at macro trading as men:</p>
<p style="padding-left: 30px;">"Take a girl that was my age at that point in time, particularly back in the '70s. I can think of two that actually started E.F. Hutton with me. &nbsp;Within four years, by 1980, right when I was getting ready to launch my company they both got married.&nbsp;<strong>Then they both had &mdash; which in my mind is as big of a killer as divorce is &mdash; they both had children. And as soon as that baby's lips touched that girl's bosom, forget it. Every single investment idea, every desire to understand what's going to make this go up or go down is going to be overwhelmed by the most beautiful experience which a man will never share about a mode of connection between that mother and that baby. I just see it happen over and over. I'm talking about trading, not managing ..."&nbsp;</strong></p>
<p><a href="http://www.businessinsider.com/tudor-jones-babies-killer-to-trading-2013-5"><em>Source: Business Insider</em></a></p></p>
<br/><br/><a href="http://www.businessinsider.com/cringeworthy-wall-street-quotes-2013-6#you-should-thank-god-and-suck-it-up-and-cope-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/danielle-chiesi-bronx-halfway-house-2013-5Danielle Chiesi Got Out Of Prison Early And Is Living In A Bronx Halfway Househttp://www.businessinsider.com/danielle-chiesi-bronx-halfway-house-2013-5
Fri, 17 May 2013 15:20:36 -0400Julia La Roche
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ceaea0accd1d56241050000-400-300/Danielle-Chiesi-.jpg" border="0" alt="Danielle Chiesi " /></p><p>Danielle Chiesi, the former beauty queen turned stock analyst who went to prison for giving insider tips to <a class="hidden_link" href="http://www.businessinsider.com/blackboard/raj-rajaratnam">Raj Rajaratnam</a>, is back in New York. &nbsp;</p>
<p><a href="http://www.bloomberg.com/news/2013-05-17/chiesi-swaps-cell-for-halfway-house-after-insider-scandal.html">Bloomberg News reports</a> that she's currently staying in a half-way house in the Bronx after completing 15-months at&nbsp;<span>Federal Prison Camp in Alderson, West Virginia (a.k.a. "Camp Cupcake").</span></p>
<p><span>She's been there since January, the report said. &nbsp;</span></p>
<p><span>"It's good to be back," she tells <a class="hidden_link" href="http://www.businessinsider.com/blackboard/bloomberg">Bloomberg</a> News. &nbsp;</span></p>
<p>In 2011, she was sentenced to <a href="http://www.businessinsider.com/danielle-chiesi-sentenced-to-jail-thinks-its-hilarious-2011-7">30 months in prison.</a>&nbsp; She got out early on good behavior. &nbsp;<a href="http://www.businessinsider.com/danielle-chiesi-heads-to-camp-cupcake-2011-10"></a></p><p><a href="http://www.businessinsider.com/danielle-chiesi-bronx-halfway-house-2013-5#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/infamous-wall-street-quotes-2013-219 Embarrassing Emails, IMs, And Conversations That Wall Street Wishes Were Never Made Publichttp://www.businessinsider.com/infamous-wall-street-quotes-2013-2
Sat, 09 Feb 2013 10:21:37 -0500Julia La Roche
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ceaea0accd1d56241050000-400-300/Danielle-Chiesi-.jpg" border="0" alt="Danielle Chiesi " /></p><p>No matter how many times embarrassing Wall Street emails, conversations or tirades get made public, it never seems to stop.</p>
<p>Just this week, we had the Standard &amp; Poor's analysts'&nbsp;<a href="http://www.businessinsider.com/goverment-complaint-against-sp-2013-2">emails and IM conversations released by the Justice Department</a>&nbsp;in its $5 billion complaint against the credit ratings agency. We also had a treasure trove of <a href="http://www.businessinsider.com/im-conversations-about-libor-2013-2">IMs between traders trying to fix LIBOR</a>.&nbsp;</p>
<p>So we've decided to compile a rundown of Wall Street's most embarrassing words they probably wish were never made public.</p><h3>'im like a whores drawers.'</h3>
<img src="http://static6.businessinsider.com/image/50213e0f69bedd5a22000005-400-300/im-like-a-whores-drawers.jpg" alt="" />
<p><p><span>On September 15, 2009, an RBS trader compared himself to a 'whore's drawers' in an IM conversation about fixing LIBOR. &nbsp;</span></p>
<p style="padding-left: 30px;"><span style="text-decoration: underline;">Yen Trader 1:</span>&nbsp;can we lower our fixings today please [Primary Submitter]</p>
<p style="padding-left: 30px;"><span style="text-decoration: underline;">Primary Submitter:</span>&nbsp;make your mind up[,] haha , yes no probs</p>
<p style="padding-left: 30px;"><span style="text-decoration: underline;">Yen Trader 1:</span><strong>&nbsp;im like a whores drawers</strong></p>
<p><span style="color: #888888;"><a href="http://cftc.gov/PressRoom/PressReleases/pr6510-13"><span style="color: #888888;"><em>Source: CFTC</em></span></a></span></p></p>
<br/><br/><h3>'Done...for you big boy' </h3>
<img src="http://static3.businessinsider.com/image/4efb73abecad044829000015-400-300/donefor-you-big-boy.jpg" alt="" />
<p><p>The CFTC released some excerpts embarrassing emails from Barclay traders in its statement about the bank's manipulation of LIBOR. &nbsp;</p>
<p>From the CFTC's release (emphasis ours):&nbsp;</p>
<p style="padding-left: 30px;">In addition, certain Barclays Euro swaps traders, led at the time by a senior trader, coordinated with and aided and abetted traders at other banks in each other&rsquo;s attempts to manipulate Euribor, even scheming to impact Euribor on key standardized dates when many derivatives contracts are settled or reset.</p>
<p style="padding-left: 30px;">The traders&rsquo; requests were frequently accepted by Barclays&rsquo; submitters, who emailed responses such as&nbsp;<strong>&ldquo;always happy to help,&rdquo; &ldquo;for you, anything,&rdquo; or &ldquo;Done&hellip;for you big boy,&rdquo; resulting in false submissions by Barclays to the BBA and EBF.</strong></p>
<p><a href="http://ftalphaville.ft.com/blog/2012/06/27/1062301/libor-manipulation-done-for-you-big-boy/"><em>Source: FT Alphaville</em></a></p></p>
<br/><br/><h3>'Let’s hope we are all wealthy and retired by the time this house of card falters.'</h3>
<img src="http://static2.businessinsider.com/image/4df25cf949e2aea14d000000-400-300/lets-hope-we-are-all-wealthy-and-retired-by-the-time-this-house-of-card-falters.jpg" alt="" />
<p><p>This was an email sent by a Standard &amp; Poors employee prior to the financial crisis.&nbsp;</p>
<p><strong>"Rating agencies continue to create an even bigger monster &mdash; the CDO market."</strong></p>
<p><strong></strong><strong>"Let&rsquo;s hope we are all wealthy and retired by the time this house of card falters."</strong></p>
<p><span style="color: #888888;"><em><a href="http://dealbook.nytimes.com/2010/04/22/e-mails-offer-look-at-rating-firms-in-subprime-crisis/"><span style="color: #888888;">Source: Dealbook</span></a>&nbsp;</em></span></p></p>
<br/><br/><a href="http://www.businessinsider.com/infamous-wall-street-quotes-2013-2#it-could-be-structured-by-cows-and-we-would-rate-it-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/infamous-wall-street-quotes-2012-820 Infamous Quotes That Wall Street Wishes Were Never Made Publichttp://www.businessinsider.com/infamous-wall-street-quotes-2012-8
Fri, 10 Aug 2012 09:42:00 -0400Julia La Roche
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ceaea0accd1d56241050000/danielle-chiesi.jpg" border="0" alt="Danielle Chiesi " /></p><p>No matter how many times embarrassing Wall Street emails or conversations get made public, it never seems to stop.</p>
<p>Just this week, we had a British bank exec's allegedly <a href="http://www.businessinsider.com/standard-chartered-complaint-quote-you-fcking-americans-2012-8">profane outburst against Americans</a>&nbsp;made public in a complaint from a New York state regulator. &nbsp;We also had an aspiring trader's <a href="http://www.businessinsider.com/please-explain-your-rationale-for-the-rainbow-2012-8">hilariously unprofessional rainbow cover letter</a> email go viral.&nbsp;</p>
<p>So we've decided to compile a rundown of Wall Street's most embarrassing words they probably wish were never made public.</p>
<p>Enjoy! &nbsp;&nbsp;</p><h3>'The BRos always wins!!' </h3>
<img src="http://static4.businessinsider.com/image/f2b9b914842a134a285bea00-400-300/the-bros-always-wins.jpg" alt="" />
<p><p>Back in 2007, then-CEO of Lehman Brother's Dick Fuld&nbsp;<a href="http://www.businessinsider.com/lehmans-ceo-dick-fuld-used-to-talk-like-a-frat-boy-in-email-exchanges-2012-4">sent an email&nbsp;response</a> to the bank's now former chief strategy officer David Goldfarb back in September 2007 where he sounded like a total frat boy.</p>
<p>Fuld,&nbsp;<strong>"I agree we need some help-but the BRos always wins!!"</strong>&nbsp;</p>
<p>Of course, we all know what happened to 'the BRos.'&nbsp;</p>
<p><span><br /><br /></span></p></p>
<br/><br/><h3>'Let’s hope we are all wealthy and retired by the time this house of card falters.'</h3>
<img src="http://static2.businessinsider.com/image/4df25cf949e2aea14d000000-400-300/lets-hope-we-are-all-wealthy-and-retired-by-the-time-this-house-of-card-falters.jpg" alt="" />
<p><p>This was an email sent by a Standard &amp; Poors employee prior to the financial crisis.&nbsp;</p>
<p><strong>"Rating agencies continue to create an even bigger monster &mdash; the CDO market."</strong></p>
<p><strong></strong><strong>"Let&rsquo;s hope we are all wealthy and retired by the time this house of card falters."</strong></p>
<p><em><a href="http://dealbook.nytimes.com/2010/04/22/e-mails-offer-look-at-rating-firms-in-subprime-crisis/">Source: Dealbook</a>&nbsp;</em></p></p>
<br/><br/><h3>'It could be structured by cows and we would rate it.'</h3>
<img src="http://static1.businessinsider.com/image/4f8df0aaeab8ea3f4300002b-400-300/it-could-be-structured-by-cows-and-we-would-rate-it.jpg" alt="" />
<p><p><span>Here's an instant message from an employee at S&amp;P before the housing market crashed. </span></p>
<p><strong>"We rate every deal. It could be structured by cows and we would rate it."</strong></p>
<p><em><a href="http://dealbook.nytimes.com/2010/04/22/e-mails-offer-look-at-rating-firms-in-subprime-crisis/">Source: Dealbook</a>&nbsp;</em></p></p>
<br/><br/><a href="http://www.businessinsider.com/infamous-wall-street-quotes-2012-8#only-potential-survivor-fabulous-fabrice-tourre-standing-in-the-middle-of-all-these-complex-highly-leverage-exotic-trades-he-created-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/billion-dollar-raja-2011-10"Billion Dollar Raja" Looks Like An Awesome Hedge Fund Moviehttp://www.businessinsider.com/billion-dollar-raja-2011-10
Fri, 28 Oct 2011 13:11:00 -0400Julia La Roche
<p><img style="float:right;" src="http://static1.businessinsider.com/image/4eaabfc8ecad04af4c000008/billion-dollar-raja.jpg" border="0" alt="Billion Dollar Raja" /></p><p>Who's excited?</p>
<p>We're excited.&nbsp; And you should be, too.</p>
<p>That's because disgraced Galleon chief <a href="http://www.businessinsider.com/blackboard/raj-rajaratnam" class="hidden_link">Raj Rajaratnam</a> and the gang are <a href="http://www.cnbc.com//id/45069490">headed to the big screen in an "investigative financial mafia drama,"</a> <a href="http://www.businessinsider.com/blackboard/cnbc-1" class="hidden_link">CNBC</a> reported.</p>
<p>From <a href="http://www.deadline.com/tag/nayan-padrai/">the director's description</a>, the movie, "Billion Dollar Raja,"&nbsp;sounds awesome:</p>
<p style="padding-left: 30px;">&ldquo;The elements of this case are irresistible with a <strong>mafia-style operation</strong> in the shady underbelly of Wall Street offices, filled with prosecutors, wiretaps, tipsters, a moll, sexual encounters, unapologetic greed, major corporations and the billionaire king of the markets, Raja,&rdquo; Padrai told Deadline.</p>
<p>Although there's no official word on who's playing what role, we're already dreaming up potential actors in our minds for who will play Danielle Chiesi, the ex-beauty queen turned stock trader, and of course the lead character, Rajaratnam.&nbsp;</p>
<p>The movie's director,&nbsp;Nayan Padrai, <a href="http://www.cnbc.com//id/45069490">says he plans to begin filming next fall</a>.</p>
<p>Too bad Rajaratnam will still be serving his <a href="http://www.businessinsider.com/raj-rajaratnam-sentencing-2011-10-13">11 years in federal prison</a> when the movie hits theaters.</p>
<p><strong>DON'T MISS:</strong> <a href="http://www.businessinsider.com/raj-rajaratnam-billionaire-2011-5#">The Fabulous Life Of Billionaire Raj Rajaratnam (Before He Was Convicted)</a></p><p><a href="http://www.businessinsider.com/billion-dollar-raja-2011-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/danielle-chiesi-heads-to-camp-cupcake-2011-10Danielle Chiesi Heads To 'Camp Cupcake' For Her 30 Month Prison Sentencehttp://www.businessinsider.com/danielle-chiesi-heads-to-camp-cupcake-2011-10
Tue, 18 Oct 2011 11:04:00 -0400Julia La Roche
<p><img style="float:right;" src="http://static4.businessinsider.com/image/4e9d8e03ecad042c11000027/camp-cupcake-danielle-chiesi.jpg" border="0" alt="Camp Cupcake Danielle Chiesi" /></p><p>Danielle Chiesi, who pleaded guilty for securities fraud in the Galleon insider trading scheme, <a href="http://www.bloomberg.com/news/2011-10-18/danielle-chiesi-s-new-prison-home-more-camp-cupcake-than-chained-heat-.html">arrives at Federal prison today</a>.</p>
<p><a href="http://www.businessinsider.com/the-nightmare-begins-for-danielle-chiesi-2011-7">Chiese, the ex-beauty queen turned analyst</a>, will head to Federal Prison Camp in Alderson, West Virginia for her 30 month sentence, <a href="http://www.businessinsider.com/blackboard/bloomberg" class="hidden_link">Bloomberg</a> reported.&nbsp;</p>
<p>Lucky for Chiesi, it could have been a lot worse. So let's hope she's in better condition than she was <a href="http://www.businessinsider.com/danielle-chiesi-sentenced-to-jail-thinks-its-hilarious-2011-7">the last time we checked in with her.</a></p>
<p>As opposed to barbed wire fences and prison cells, Alderson has attractive brick buildings surrounded by trees and grassy lawns in the Allegheny mountains.&nbsp;</p>
<p>The prison, which resembles a college campus more than a Federal correction facility, is often referred to as <a href="http://en.wikipedia.org/wiki/Federal_Prison_Camp,_Alderson">"Camp Cupcake." </a></p>
<p>It's also the same facility where America's home decorating guru <a href="http://www.businessinsider.com/blackboard/martha-stewart" class="hidden_link">Martha Stewart</a> served time for stock trading on non-public information.&nbsp; <a href="http://www.businessinsider.com/martha-stewart-back-finally-on-the-board-after-five-year-sec-ban-2011-9">Stewart is doing just fine these days</a>.</p>
<p>Still, it's probably not going to be all cupcakes for Chiesi though.&nbsp;&nbsp;</p>
<p>Like the other inmates, Chiesi will have to do manual work.&nbsp; The prisoners do <a href="http://en.wikipedia.org/wiki/Federal_Prison_Camp,_Alderson">get holidays off</a> depending on their job and they are allowed to have weekend visitors.</p>
<p>Meanwhile, disgraced Galleon chief <a href="http://www.businessinsider.com/raj-rajaratnam-sentencing-2011-10-13">Raj Rajaratnam was sentenced to 11 years</a> in Federal prison and slapped with a $10 million fine.</p>
<p><strong>SEE ALSO:</strong> <a href="http://www.businessinsider.com/raj-rajaratnam-jail-2011">The Rise And Fall Of Raj Rajaratnam &gt;&gt;</a></p><p><a href="http://www.businessinsider.com/danielle-chiesi-heads-to-camp-cupcake-2011-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/the-nightmare-begins-for-danielle-chiesi-2011-7The Nightmare Begins For Danielle Chiesi http://www.businessinsider.com/the-nightmare-begins-for-danielle-chiesi-2011-7
Wed, 20 Jul 2011 17:04:00 -0400Jerry Byrne
<p><img style="float:right;" src="http://static1.businessinsider.com/image/4e273f7e4bd7c87902090000/danielle-chiesi-7.jpg" border="0" alt="danielle-chiesi-7" /></p><p>Danielle Chiesi, the former beauty queen turned stock trader was just sentenced to 30 months in prison by Judge Richard Holwell in Manhattan Federal court.</p>
<p>Chiesi, who was once had the ear of hedge fund billionaire <a href="http://www.businessinsider.com/blackboard/raj-rajaratnam" class="hidden_link">Raj Rajaratnam</a>, pled guilty last January to three counts of conspiracy to commit securities fraud. &nbsp; &nbsp;</p>
<p>The domino effect for the District Attorney's office began here, eventually snaring Rajaratnam himself, along with other traders who are also awaiting sentencing themselves. Donald Longueuil, the former SAC trader will be sentenced on July 29, and Rajaratnam faces his own music on September 27. In addition, her former boss at New Castle, Mark Kurland is currently serving 27 months for the same crime.&nbsp;</p>
<p>Ceisei passed on the information to her married boss and lover, Kurland. Chiesi's lawyers had been asking for a lesser sentence, given she had never traded on any of the illegal tips in her personal account, but the judge didn't agree. &nbsp;</p>
<p>Chiesi was colorful fodder around the water coolers on Wall Street, as she once compared insider trading to having an orgasm. On top of everything else, she has agreed to pay $540,000 to settle related civil charges with the Securities and Exchange Commission.</p>
<p>Unfortunately, I know from experience just what she was going through. I myself was sentenced for securities fraud back in June of '07. You stand before the Judge listening to everyone around you speak but you're not hearing much, it's all just a blur as you await the magic number. Will it be at the high range of sentencing guidelines, the middle, or best of all, at the lower end.&nbsp;&nbsp;</p>
<p>As I outlined in my recently published book, "My Road Home," your legs are wobbly, but stand you must, you try to remain stoic, keep the brave face as best you can. You think to yourself: how the hell did I get here? What happened to my moral compass, what took me off the rails so thouroughly?&nbsp; How could I let&nbsp; so many people down? The questions could go on and on, too many to even fathom.</p>
<p>Ms. Chiesi was no doubt hoping the Judge would give her some time to get her affairs in order before having to report to prison, which he indeed did Or would she be remanded immediately as I was? I knew that was going to be the case when I walked in the courtroom, I wasn't coming out until I was a free man. In my case as soon as the Judge produced his sentence, I could see three court officers step in behind my chair, one of them slowly reaching for his handcuffs. The dreaded moment is here, no one can help you now. It's all crashing down on you now as you here him say, "Sir, please put your hands behind your back."&nbsp;</p>
<p>The nightmare begins........</p>
<p><a href="http://www.businessinsider.com/danielle-chiesi-sentenced-to-jail-thinks-its-hilarious-2011-7">Click here to watch a video of Chiesi's strange press conference &gt;</a></p><p><a href="http://www.businessinsider.com/the-nightmare-begins-for-danielle-chiesi-2011-7#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/danielle-chiesi-sentenced-to-jail-thinks-its-hilarious-2011-7Does This Look Like A Woman Who's About To Go To Prison?http://www.businessinsider.com/danielle-chiesi-sentenced-to-jail-thinks-its-hilarious-2011-7
Wed, 20 Jul 2011 16:19:00 -0400Courtney Comstock
<p>Danielle Chiesi got sentenced today for her involvement in the insider trading scandal that also cost <a href="http://www.businessinsider.com/blackboard/raj-rajaratnam" class="hidden_link">Raj Rajaratnam</a> his hedge fund career.</p>
<p>She doesn't seem too concerned about it. There are&nbsp;</p>
<p>Click to watch her relaxing --and cracking up-- on a bench outside the courtroom. <span style="text-decoration: line-through;">We'll have a video of her bugging out during her lawyer's press conference in a moment. </span>&nbsp;It's below (second video). Further below are a few screen grabs of the 20-some emotions she seems to go through during the press conference. <strong>UPDATE:</strong> We couldn't hear the sound. Apparently she was flirty.</p>
<p>There are two <a class="hidden_link" href="http://www.businessinsider.com/blackboard/">videos</a> below. Video #2 (BELOW the first one) is really crazy.</p>
<p>&nbsp;</p>
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<p>The many emotions of jail-bound Danielle Chiesi:</p>
<p><img src="http://static1.businessinsider.com/image/4e273e0d4bd7c8297e080000/danielle-chiesi-1.jpg" border="0" alt="danielle-chiesi-1" /></p>
<p><img src="http://static1.businessinsider.com/image/4e273e1accd1d5b274060000/danielle-chiesi-2.jpg" border="0" alt="danielle-chiesi-2" /></p>
<p><img src="http://static3.businessinsider.com/image/4e273e274bd7c8557e030000/danielle-chiesi-3.jpg" border="0" alt="danielle-chiesi-3" /></p>
<p><img src="http://static6.businessinsider.com/image/4e273ec149e2ae836f120000/danielle-chiesi-4.jpg" border="0" alt="danielle-chiesi-4" /></p>
<p><img src="http://static1.businessinsider.com/image/4e273f224bd7c8527e0b0000/danielle-chiesi-6.jpg" border="0" alt="danielle-chiesi-6" /></p>
<p><img src="http://static1.businessinsider.com/image/4e273f7e4bd7c87902090000/danielle-chiesi-7.jpg" border="0" alt="danielle-chiesi-7" /></p>
<p><img src="http://static4.businessinsider.com/image/4e2737cfcadcbbb244080000/danielle-chiesi-laughing.jpg" border="0" alt="danielle-chiesi-laughing" /></p><p><a href="http://www.businessinsider.com/danielle-chiesi-sentenced-to-jail-thinks-its-hilarious-2011-7#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/danielle-chiesi-paying-540000-to-settle-sec-charges-could-still-be-sentenced-on-criminal-charges-2011-7Danielle Chiesi Paying $540,000 To Settle SEC Charges, Still To Be Sentenced On Criminal Chargeshttp://www.businessinsider.com/danielle-chiesi-paying-540000-to-settle-sec-charges-could-still-be-sentenced-on-criminal-charges-2011-7
Wed, 13 Jul 2011 10:35:48 -0400Katya Wachtel
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ceaea0accd1d56241050000/danielle-chiesi.jpg" border="0" alt="Danielle Chiesi " /></p><p> Insider trader and former hedge fund worker Danielle Chiesi has agreed to pay $540,000 to settle <a class="hidden_link" href="http://www.businessinsider.com/blackboard/sec">SEC</a> civil charges against her, in connection to the Galleon insider trading case, C<a class="hidden_link" href="http://www.businessinsider.com/blackboard/nbc">NBC</a> reports.</p>
<p>Chiesi previously pleaded guilty to securities fraud and conspiracy to commit securities fraud, and will be sentenced for the criminal charges against her on July 27.</p>
<p>Chiesi is appealing for a lenient sentence from the judge overseeing her case, as she claims <a href="http://www.businessinsider.com/danielle-chiesi-says-her-hedge-fund-lover-bullied-her-for-20-years-2011-6">she was bullied into sharing material</a>, non-public information by her hedge fund boss and longtime lover, Mark Kurland.</p>
<p>During the <a class="hidden_link" href="http://www.businessinsider.com/blackboard/raj-rajaratnam">Raj Rajaratnam</a> trial, jurors heard a series of wiretapped conversations between Chiesi, th e former Galleon chief and Kieran Taylor, in which they discuss trading Akamai Technologies stock back in 2008.</p>
<p>In one of those calls, Chiesi told Raj that Akamai is going to lower its earnings guidance, a few days before the company revealed the details publicly in July of that year. Prosecutors <a href="../../danielle-chiesi-galleon-trial-akamai-kieran-taylor-2011-4">say Chiesi was tipped by Taylor, who at the time, worked for the tech company.</a></p>
<p>The government says that after he received the tip, Raj increased his short position on the stock from 300,000 shares to 875,000 shares, just before the public announcement on <a href="http://www.ft.com/cms/s/0/ea73ee0c-5ee3-11e0-a2d7-00144feab49a.html">July 30.</a></p>
<p>"They&rsquo;re gonna guide down. I just got a call from my guy," Chiesi said to Raj. "I played him like a finely tuned piano." Then she urged Raj to act before Wednesday, when Akamai would go public with the downgrade.</p>
<p>After the announcement on Wednesday, at precisely 5:30 pm, Raj called Chiesi. "I just wanted to say thank you," he said. The news of the reduced projections had sent the stock tumbling by more than 25%, <a href="http://online.wsj.com/article/SB10001424052748704587004576242712769664744.html">Akamai's CFO testified yesterday</a>.</p><p><a href="http://www.businessinsider.com/danielle-chiesi-paying-540000-to-settle-sec-charges-could-still-be-sentenced-on-criminal-charges-2011-7#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/new-details-about-raj-kumar-chiesi-and-what-happened-when-they-got-caught-2011-6PROSTITUTES, AN ANONYMOUS LETTER, A "SORRY" TEXT AND MORE: New Details About Catching Rajhttp://www.businessinsider.com/new-details-about-raj-kumar-chiesi-and-what-happened-when-they-got-caught-2011-6
Thu, 23 Jun 2011 14:41:00 -0400Courtney Comstock
<p><img style="float:right;" src="http://static3.businessinsider.com/image/4dcaacd349e2aeb34d070000/asha-raj.jpg" border="0" alt="asha raj" /></p><p>About a month and a half ago, the billionaire hedge fund manager <a href="http://www.businessinsider.com/raj-rajaratnam-convicted-4-25-2011">Raj Rajaratnam was convicted</a> of insider trading.</p>
<p>It was great news for Wall Street and hedge fund managers because it reaffirmed trust in the industry (<a href="http://www.businessinsider.com/us-attorney-says-insider-trading-is-everywhere-you-look-2011-6">whether or not it's deserved</a>). Bloomberg Markets Magazine quoted big time hedge fund manager Lee Ainslie saying that his worst nightmare would have been Raj going free.&nbsp;</p>
<p>Even if <a href="http://www.businessinsider.com/category/the-raj-trial">you've been following the trial extensively</a>, you'll be surprised by the new details revealed in <a href="http://www.newyorker.com/reporting/2011/06/27/110627fa_fact_packer?currentPage=all">an article in this week's New Yorker</a>.</p>
<p>For a quick background, <a href="http://www.businessinsider.com/raj-rajaratnam-convicted-4-25-2011">read this</a>.</p>
<p>Here are the new details:</p>
<ul>
<li>Raj flew a group of people on his private plane to the Superbowl every year for a weekend of partying</li>
<li>The investigation into Galleon began with a letter that was sent to the SEC. It read:&nbsp;</li>
</ul>
<p style="padding-left: 120px;"><span class="Apple-style-span" style="line-height: 19px;">&ldquo;<em>It is hedge funds like Galleon Group that create wealth for their shareholders and themselves at the expense of innocent investors... Insider trading word in this fund should be changed to insider partnership and prostitution... Prostitution is rampant for executives visiting Galleon. You will find that the Super Bowl parties for the executives, paid for by Galleon Group, include prostitutes and other forms of illegal entertainment. In return, the executives provide Galleon the unfair edge that the fund leverages so well.</em> The letter was signed, <em>Seeking integrity in business</em>.</span></p>
<p><span class="Apple-style-span" style="line-height: 19px;">Also fascinating: what happened when they all got caught.</span></p>
<p><span class="Apple-style-span" style="line-height: 19px;">Raj, Kumar, and Danielle Chiesi were all arrested on the same day. </span></p>
<ul>
<li>Raj was arrested at his apartment at Sutton Place, then released on $100 million bond. "Within hours, Adam Smith and Rengan Rajaratnam had removed evidence from the Galleon offices."</li>
<li>Kumar fainted when the cops put handcuffs on him. "He fainted, hitting his head against a wall. He had to be treated at a local hospital before he could be brought in for booking."</li>
<li>Chiesi woke up to four agents wearing bulletproof vests knocking on her door at 6 AM. "The agents spent an hour showing Chiesi a file of evidence before concluding that she wouldn&rsquo;t co&ouml;perate. She refused to place a monitored call to someone on the West Coast&mdash;probably Hector Ruiz."</li>
</ul>
<p>Later the same day, Raj's wife, Asha Rajaratnam, sent a text message to Kumar&rsquo;s wife, Malvika: &ldquo;I&rsquo;m sorry.&rdquo;</p>
<p>After reading this article, Raj will be slapping his hand on his forehead about one thing he did. Prosecutors called him in first years before he was actually caught. They were suspicious about texts he sent to roomy81, but they didn't have much to go on.</p>
<p>So they asked Raj if he knew who the IM name "roomy81" belonged to, being careful to construct the question so that it wouldn't tip him off. "Roomy Khan," he said. He gave them her name, and their investigation took off from there.</p>
<p>It led them to a IM conversation cited many times in the case, and an IM from Khan that said, "do not buy plcm till i het guidance."</p>
<p>Without that IM, says the article, the case would have died.</p>
<p><strong><a href="http://www.businessinsider.com/raj-rajaratnam-billionaire-2011-5">The fabulous life of Raj Rajaratnam (before he was convicted) &gt;</a></strong></p><p><a href="http://www.businessinsider.com/new-details-about-raj-kumar-chiesi-and-what-happened-when-they-got-caught-2011-6#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/danielle-chiesi-says-her-hedge-fund-lover-bullied-her-for-20-years-2011-6Danielle Chiesi Blames A "Toxic" Sexual Relationship For Her Insider Tradinghttp://www.businessinsider.com/danielle-chiesi-says-her-hedge-fund-lover-bullied-her-for-20-years-2011-6
Tue, 14 Jun 2011 12:29:31 -0400Katya Wachtel
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ceaea0accd1d56241050000/danielle-chiesi.jpg" border="0" alt="Danielle Chiesi " /></p><p>Danielle Chiesi, the hedge fund trader who pleaded guilty to insider trading in connection to the Galleon case, wants leniency from the judge, and has a new defense to get it.</p>
<p>Her lawyers say that she was bullied into sharing material, non-public information by her hedge fund boss and longtime lover, Mark Kurland, according to <a href="http://www.businessweek.com/ap/financialnews/D9NRA7R01.htm">Businessweek</a>.</p>
<p>In a letter to federal judge, Chiesi's defense said Kurland "used their <a href="http://wraltechwire.com/business/tech_wire/news/blogpost/9725215/">&ldquo;toxic&rdquo;</a> sexual relationship to manipulate her into feeding him inside tips."</p>
<p>He "engaged in a &lsquo;vicious cycle of abuse&rsquo; and &lsquo;psychological exploitation&rsquo; to turn Dani into his &lsquo;virtual servant,'" lawyers said, according to <a href="http://wraltechwire.com/business/tech_wire/news/blogpost/9725215/">WRALtechwire</a>.</p>
<p>Kurland was the founder of New Castle Funds. He <a href="http://dealbook.nytimes.com/2010/05/21/hedge-fund-executive-is-sentenced-in-galleon-case/">already pleaded guilty to insider trading</a> last year, and will serve two years in prison.</p>
<p>Apparently Chiesi has been diagnosed with borderline personality disorder.</p>
<p><a href="http://wraltechwire.com/business/tech_wire/news/blogpost/9725215/">Her lawyers said in a court filing:</a></p>
<p style="padding-left: 30px;">Three things in her life mattered deeply to Danielle -- her family, her profession, and Mark Kurland. Dani was motivated by an unhealthy and abnormal desire to please. The primary focus of this was Mark Kurland, but it also affected her interactions with other people in the hedge fund world and with executives at public companies.</p>
<p><strong>Now:</strong> <a href="http://www.businessinsider.com/raj-and-danielle-chiesi-wiretapped-phone-call-akamai-earnings-2011-4">Listen To Raj And Danielle Chiesi Revel In Their Trading Of Akamai Stock Ahead Of A Public Guidance Announcement &gt;</a></p><p><a href="http://www.businessinsider.com/danielle-chiesi-says-her-hedge-fund-lover-bullied-her-for-20-years-2011-6#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/14-counts-against-raj-rajaratnam-prediction-2011RAJ VERDICT: Our Complete List Of Predictions On The 14 Countshttp://www.businessinsider.com/14-counts-against-raj-rajaratnam-prediction-2011
Wed, 11 May 2011 10:29:00 -0400Courtney Comstock
<p><img style="float:right;" src="http://static1.businessinsider.com/image/4ad8b9b4000000000051f3d4/raj-rajaratnam.jpg" border="0" alt="Raj Rajaratnam" /></p><p></p>
<p><em>We ran this a couple of weeks ago, but now that the Jury is about to deliver a result, we're re-running again</em>.</p>
<p>Raj might get convicted Monday.</p>
<p>The jury has been deliberating on the 14 counts against Raj for 8 days, but only 2 counting the days since the jury started deliberations over again.</p>
<p>When they come to 14 unanimous decisions about the counts against the alleged insider trader, he will be convicted or go free.</p>
<p>Our prediction:</p>
<ol>
<li><strong>Galleon conspiracy</strong> - not guilty (Adam Smith's testimony was good, but there are 8 "overt acts" that the prosecution had to prove: trading in the stock of ICS, XILINX, Clearwire, Vishay, Spansion, Goldman Sachs, Atheros, and Marvel. Their case on ICS --the "eyes" email-- and Goldman --the Rajat Gupta calls-- is awesome. But on Clearwire, a WSJ article came out about the deal and Raj's brother, Rengan, told Raj, "we're fucked." And on Spansion, his source was Kumar and the government didn't include Spansion in their Kumar conspiracy charge. On Vishay, its evidence is pretty circumstantial too. <a href="http://www.businessinsider.com/listen-to-the-raj-rajaratnam-wiretaps-2011-3">Read more here</a>.)</li>
<li><strong>Khan conspiracy </strong>- not guilty (the government is requiring the jury to rely on a lot of 3rd party accounts. The best part of their argument is that Khan's tip about Google's disastrous quarter were at least a factor in Raj's decision, and she told Raj, "thank you," proof she benefited. But Raj sent his colleague an email that says it "hit his price target" and that's why he dumped and then shorted Google. On Polycom, there is no account of Khan tipping Raj. There is only Khan IMing him, "hi u there?", and Raj later saying to a colleague, "buy 60 plcm," and Raj later telling Khan, "thanks for plcm idea." And on Hilton, there was a news article, a UBS analyst report, and a Fly on the Wall article about it.)</li>
<li><strong>Goel conspiracy -</strong> guilty (Raj gave Goel money, Goel gave Raj specific tips about Intel ie the equity splits, and the quarterly earnings.)</li>
<li><strong>Kumar conspiracy</strong> - not guilty (because Kumar was the least credible witness and because he admitted to not entering into an agreement to insider trade with Raj, saying, "I would never have done that.")</li>
<li><strong>Chiesi conspiracy </strong>- guilty (there are tons of phone calls corroborating the charge, and Raj told her to keep the info "radio silent")</li>
<li><strong>Clearwire on March 24 2008</strong>- guilty (there are news articles and analyst reports with info similar to that relayed on the wiretap of Goel telling Raj he would find out more about Intel's investment in Clearwire, but Raj has specific details about the deal)</li>
<li><strong>Clearwire on March 25 2008 </strong>- same as above</li>
<li><strong>Akami on July 25 2008 </strong>- not guilty (there's a wiretap of Raj tipping Chiesi, but no wiretap of Raj getting the tip from Goel. Also, there is public chatter about the deal.)</li>
<li><strong>Akami on July 29 2008 </strong>- same as above</li>
<li><strong>Akami on July 30 2008 </strong>- same as above</li>
<li><strong>People Support </strong>- guilty (the charge is that Raj gave Goel a tip. There were two news articles with similar information, but Raj knew exact numbers.)</li>
<li><strong>People Support</strong> - guilty (Galleon had an employee on the board. Raj traded People Support in Goel's account.)</li>
<li><strong>Told Galleon to buy ATI </strong>- not guilty (It's relying on Kumar's testimony. Also, there were many rumors about the deal.)</li>
<li><strong>Told Galleon to buy Intel </strong>- guilty (Goel told Raj to buy Intel. He knew specifics ahead of time.)</li>
</ol>
<p><a href="http://www.businessinsider.com/raj-rajaratnam-trial-insider-trading-2011-4"><strong>Now click here to see the 9 things no body is talking about at the Raj trial &gt;</strong></a></p><p><a href="http://www.businessinsider.com/14-counts-against-raj-rajaratnam-prediction-2011#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/blind-item-who-did-raj-call-a-really-trashy-little-girl-2011-5BLIND ITEM: Who Did Raj Call "A Really Trashy Little Girl"http://www.businessinsider.com/blind-item-who-did-raj-call-a-really-trashy-little-girl-2011-5
Wed, 04 May 2011 15:49:51 -0400Courtney Comstock
<p><img style="float:right;" src="http://static1.businessinsider.com/image/4daf61cfcadcbb661e120000/raj-female-bodyguard-.jpg" border="0" alt="raj-female-bodyguard-" /></p><p>In the wiretaps that the jury requested to hear again today in the trial of Raj Rajaratnam for insider trading today, he calls an unnamed woman "a really trashy little girl."</p>
<p>We're not sure who the hedge fund manager was trashing-talking on the phone Anil Kumar, an Intel executive and his friend from college, but we have a feeling it's Danielle Chiesi, one of Raj's most colorful tipsters, because of the Hector mention (it's rumored she <a href="http://www.businessinsider.com/anil-kumar-raj-wanted-me-to-break-up-hector-ruiz-and-daniella-2011-3">had a thing with him</a>).</p>
<p>Raj's conversation with Anil seems to corroborate his testimony that <a href="http://www.businessinsider.com/anil-kumar-raj-wanted-me-to-break-up-hector-ruiz-and-daniella-2011-3">Raj told him to stop Hector</a> from telling Chiesi information.</p>
<p style="padding-left: 30px;">RR: "... because she's a really trashy little girl, right?"</p>
<p style="padding-left: 30px;">RR: "... He knows that Hector calls her [and stays in his/her apartment]."</p>
<p style="padding-left: 30px;">RR: "... because she brags about it."</p>
<p>The jury also requested to hear Raj saying "<a href="http://www.businessinsider.com/jury-asks-to-hear-wiretaps-raj-rajaratnam-didnt-understand-markets-explains-the-financial-crisis-2011-5">people say I don't understand the markets</a>," again.</p>
<p><strong><a href="http://www.businessinsider.com/jury-asks-to-hear-wiretaps-raj-rajaratnam-didnt-understand-markets-explains-the-financial-crisis-2011-5">Click here to see what else the jury requested to hear &gt;</a></strong></p>
<p><strong><a href="http://www.businessinsider.com/raj-trial-photos-bodyguard-car-2011">Click here to see more of Raj with his female bodyguard &gt;</a><br /></strong></p><p><a href="http://www.businessinsider.com/blind-item-who-did-raj-call-a-really-trashy-little-girl-2011-5#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/raj-and-danielle-chiesi-wiretapped-phone-call-akamai-earnings-2011-4AUDIO: Listen To Raj And Danielle Chiesi Revel In Their Trading Of Akamai Stock Ahead Of A Public Guidance Announcement (GS, AKAM)http://www.businessinsider.com/raj-and-danielle-chiesi-wiretapped-phone-call-akamai-earnings-2011-4
Tue, 05 Apr 2011 14:21:00 -0400Katya Wachtel
<p>Yesterday, jurors heard a series of wiretapped conversations between Danielle Chiesi, Raj Rajaratnam and Kieran Taylor, in which they discuss trading Akamai Technologies stock back in 2008.</p>
<p>In one of those calls, Chiesi told Raj that Akamai is going to lower its earnings guidance, a few days before the company revealed the details publicly in July of that year. Prosecutors <a href="http://www.businessinsider.com/danielle-chiesi-galleon-trial-akamai-kieran-taylor-2011-4">say Chiesi was tipped by Taylor, who at the time, worked for the tech company.</a></p>
<p>The government says that after he received the tip, Raj increased his short position on the stock from 300,000 shares to 875,000 shares, just before the public announcement on <a href="http://www.ft.com/cms/s/0/ea73ee0c-5ee3-11e0-a2d7-00144feab49a.html">July 30.</a></p>
<p>"They&rsquo;re gonna guide down. I just got a call from my guy," Chiesi said to Raj. "I played him like a finely tuned piano." Then she urged Raj to act before Wednesday, when Akamai would go public with the downgrade.</p>
<p>After the announcement on Wednesday, at precisely 5:30 pm, Raj called Chiesi. "I just wanted to say thank you," he said. The news of the reduced projections had sent the stock tumbling by more than 25%, <a href="http://online.wsj.com/article/SB10001424052748704587004576242712769664744.html">Akamai's CFO testified yesterday</a>.</p>
<p>The defense showed jurors a Goldman Sachs analyst report. They said that "anyone could draw the conclusion that the company would reduce its earnings guidance for 2008 based on the competitive pressures it faced," according to the <a href="http://www.ft.com/cms/s/0/ea73ee0c-5ee3-11e0-a2d7-00144feab49a.html#axzz1IYtECRJL">FT</a>.</p>
<p>Listen to the call:</p>
<p>
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</p><p><a href="http://www.businessinsider.com/raj-and-danielle-chiesi-wiretapped-phone-call-akamai-earnings-2011-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/danielle-chiesi-galleon-trial-akamai-kieran-taylor-2011-4TODAY IN THE RAJ TRIAL: Lawyers Bicker Over Recordings Of Danielle Chiesi And The Akamai Executive Who Had A "Present" For Her (AKAM, AMD)http://www.businessinsider.com/danielle-chiesi-galleon-trial-akamai-kieran-taylor-2011-4
Mon, 04 Apr 2011 17:20:00 -0400Katya Wachtel
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ceaea0accd1d56241050000/danielle-chiesi.jpg" border="0" alt="Danielle Chiesi " /></p><p>After the regular Friday hiatus, the Raj Rajaratnam trial picked up again today and talk turned to what is and isn't admissible as evidence in the trial.</p>
<p>At the center of the sparring -- <a href="http://www.businessinsider.com/moffatt-six-months-in-prison-2010-9">Danielle Chiesi, the former hedge fund consultant who has already pleaded guilty to insider trading</a> and says she passed along tips to the Galleon head about Akamai and other companies.</p>
<p>"Before a relatively small audience in the United States District Court in Manhattan," <a href="http://dealbook.nytimes.com/2011/04/04/focus-shifts-to-google-trade-at-galleon-trial/">Dealbook</a> reported, prosecutors and the defense bickered over government wiretaps of Chiesi speaking with a former Akamai executive called Kieran Taylor.</p>
<p>Prosecutors say the recordings are crucial to their case and show that an illegal tip originating with Taylor about Akamai's July 2008 earnings ended up in Raj's hands; the defense argues that because the recordings contain "<a href="http://www.ft.com/cms/s/0/ea73ee0c-5ee3-11e0-a2d7-00144feab49a.html?ftcamp=rss#axzz1IYtECRJL">expletives and salty language</a>", jurors will be prejudiced against their client.</p>
<p>Raj's lead attorney John Dowd described the tapes as "completely and utterly irrelevant" -- he said "they don't pertain to the one tip about Akamai that his client allegedly received."</p>
<p>Eventually, Judge Holwell came down in favor of the government, saying certain sections of the tapes could be played. He concluded that "an inference of a quid pro quo-type relationship" was definitely evident in the recordings and the jury should hear that, according to the <a href="http://online.wsj.com/article/SB10001424052748704587004576242712769664744.html">WSJ</a>.</p>
<p>In one of the recordings, Taylor tells Chiesi he had "<a href="http://online.wsj.com/article/SB10001424052748704587004576242712769664744.html">a present</a>" of information for her. Government prosecutor Jonathan Streeter says that demonstrates that Taylor was passing along insider information. In exchange for that tip, Chiesi passed along information about "another company, along with career advice and other favors."</p>
<p>As for whether or not Chiesi and Taylor were having an affair, as has previously been <a href="http://www.businessinsider.com/anil-kumar-raj-wanted-me-to-break-up-hector-ruiz-and-daniella-2011-3">suggested in the case of Chiesi and AMD executive Hector Ruiz</a>, <a href="http://dealbook.nytimes.com/2011/04/04/focus-shifts-to-google-trade-at-galleon-trial/">Dealbook reported</a>,</p>
<p style="padding-left: 30px; text-align: left;">At one point, Judge Holwell asked whether the government&rsquo;s position was whether there was a physical relationship between Ms. Chiesi and Mr. Taylor, as there was between Ms. Chiesi and another defendant. Jonathan Streeter, an assistant United States attorney, demurred.</p>
<p><strong><a href="http://www.businessinsider.com/s?q=raj+rajaratnam+trial">Don't miss our earlier coverage of the trial &gt;</a></strong></p><p><a href="http://www.businessinsider.com/danielle-chiesi-galleon-trial-akamai-kieran-taylor-2011-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/anil-kumar-raj-wanted-me-to-break-up-hector-ruiz-and-daniella-2011-3Did Raj Try To Break Up Hector Ruiz And Danielle Chiesi? (AMD)http://www.businessinsider.com/anil-kumar-raj-wanted-me-to-break-up-hector-ruiz-and-daniella-2011-3
Thu, 17 Mar 2011 10:32:00 -0400Courtney Comstock
<p><img style="float:right;" src="http://static3.businessinsider.com/image/4bf7e6c47f8b9a175a0d0100-220-157/danielle-chiesi.jpg" border="0" alt="Danielle Chiesi" width="220" height="157" /></p><p>Raj tried to break up Hector Ruiz and Danielle Chiesi,&nbsp;according to Anil Kumar.</p>
<p>The whistleblower claims that Raj told him to get Ruiz, the CEO of AMD, to "stop telling Daniella" information.</p>
<p>Danielle Chiesi reportedly had an "intimate" relationship with Ruiz at the time, and he would tell her what was going on with the company; information that Raj wanted to know and was used to getting from Kumar.</p>
<p>Raj allegedly told Kumar that Chiesi "talks a lot to a lot of people," rendering the information Raj got from Kumar, who spoke to him on a consulting basis&nbsp;at McKinsey&nbsp;and learned similar information, less valuable.</p>
<p><img style="float:right;" src="http://static2.businessinsider.com/image/4d77bef14bd7c85d37030000/hector-ruiz.jpg" border="0" alt="hector ruiz" width="216" height="161" /></p>
<p>"He told me he didn't want Daniella knowing because she talks to a lot of people," says Kumar.</p>
<p>According to Kumar, Raj hoped that Kumar would speak to Ruiz, the McKinsey exec's client, and ask him to stop telling Danielle things.</p>
<p>But Kumar refused. He says, "I would not go to Ruiz and say, 'you know, I heard you're having a relationship with Daniella and telling her things and could you not to do that?'"</p>
<p>He couldn't see a situation where that would be appropriate, he says, because 1) in Indian custom it's not appropriate, he respects older people and 2) he just "couldn't see a situation where that would happen."</p>
<p><img style="float:right;" src="http://static3.businessinsider.com/image/4af346bd000000000087d7ee/rajrajartnamleavescourtjpg.jpg" border="0" alt="rajrajartnamleavescourt.jpg" width="219" height="163" /></p>
<p>Of course the assumption is that Raj wanted Kumar to sever Chiesi's relationship with Ruiz not because he didn't want her to know information (he tells her what he knows about AMD, as you'll see in the transcript below), but because he was jealous -- he was having his own "<a href="http://www.businessweek.com/news/2010-08-17/ibm-s-moffat-says-chiesi-played-him-for-inside-tips.html">intimate relationship</a>" with her.</p>
<p>In the wiretaps played for the courtroom in the trial of billionaire Raj Rajaratnam for insider trading, Danielle Chiesi buttered Raj up, saying, "[Bob Moffat another man she was having an "intimate relationship" with] is <a href="http://www.businessinsider.com/danielle-chiesi-told-raj-geeky-2011-3">more like the geeky type, he's not like charismatic like you are</a>."</p>
<p><img style="float:right;" src="http://static2.businessinsider.com/image/4d7fec9ecadcbb1c43170000/anil-kumar.jpeg" border="0" alt="anil-kumar" width="234" height="165" /></p>
<p>"I'm a rogue," Raj replied.</p>
<p>Later in their conversation, Raj gave Chiesi a tip about AMD and said, don't tell anyone -- even your boyfriends.</p>
<p>Here's a transcript of the end of the conversation:</p>
<p><img src="http://static3.businessinsider.com/image/4d82172f4bd7c8ba24100000/danielle-raj-convo.jpg" border="0" alt="danielle-raj-convo" /></p>
<p><strong>What it would mean for the case if Kumar's testimony is true</strong>: It adds to the prosecution's case that the information Anil gave to Raj was valuable, Raj valued it very much, it was not public knowledge and he wanted it to stay that way.</p>
<p><strong>If Kumar's testimony isn't true:</strong> That Kumar's information wasn't valuable, it was pretty much public information, which supports the defense's case.</p>
<p><a href="http://www.businessinsider.com/category/the-raj-trial">Click here to see all the juicy details that have come out of the trial &gt;</a></p><p><a href="http://www.businessinsider.com/anil-kumar-raj-wanted-me-to-break-up-hector-ruiz-and-daniella-2011-3#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/conversation-raj-ian-horowitz-markets-in-2008-and-buying-amd-on-insider-info-2011-3Check Out The Convo Raj Had With A Galleon Analyst About The Insane Markets In Fall 2008 And Buying AMD On Insider Infohttp://www.businessinsider.com/conversation-raj-ian-horowitz-markets-in-2008-and-buying-amd-on-insider-info-2011-3
Mon, 14 Mar 2011 19:05:00 -0400Courtney Comstock
<p>Below is a transcript of the conversation that the Raj Rajaratnam prosecution seems to be offering as intent to trade on insider information "48 hours before" the deal from Anil Kumar.</p>
<p>The prosecution <a href="http://www.businessinsider.com/raj-must-be-found-guilty-judge-instructions--2011-3">needs to prove that Raj traded on insider information</a> to win their case against the billionaire hedge fund manager, who is on trial in Manhattan for insider trading.</p>
<p>In this case, Raj seems to describe his ability to get information from Anil Kumar <a href="http://static1.businessinsider.com/image/4ceaea0accd1d56241050000-195-146/danielle-chiesi.jpg">on the timing an injection of cash</a> coming from Abu Dhabi into AMD.</p>
<p>The "intent," is something and all, but the most interesting part is simply to see how the head of a multi billion hedge fund talks to one of his employees about the insane markets in the fall of 2008 and their books.</p>
<p>A bit of context: Raj had allegedly told Kumar that the markets were all crap in 2008 and the only places he could make money were "events," like company mergers or big deals.</p>
<p>First Raj gets a general overview of the market from his employee Ian Horowitz, then Horowitz reviews Galleon's performance, and then Raj delves into getting advance info on AMD and buying "3 to 5 million."</p>
<p>(He told Danielle Chiesi that he <a href="http://www.businessinsider.com/danielle-chiesi-told-raj-geeky-2011-3">ended up going long 25 million shares</a>.)</p>
<p>The following call took place on September 12, 2008. Raj allegedly found out that AMD would be announcing its Abu Dhabi injected on October 7th nearly a week early, on September 30 2008.</p>
<p><img src="http://static4.businessinsider.com/image/4d7e9cfcccd1d55c7e130000/raj-ian-convo-1.jpg" border="0" alt="raj-ian-convo-1" /></p>
<p><img src="http://static6.businessinsider.com/image/4d7e9d31cadcbb4b0a130000/raj-ian-convo-2.jpg" border="0" alt="raj-ian-convo-2" /></p>
<p><img src="http://static1.businessinsider.com/image/4d7e9d7e4bd7c80407460000/raj-ian-convo-3.jpg" border="0" alt="raj-ian-convo-3" /></p>
<p><img src="http://static2.businessinsider.com/image/4d7e9d8a4bd7c87608060000/raj-ian-convo-4.jpg" border="0" alt="raj-ian-convo-4" /></p>
<p><a href="http://www.businessinsider.com/category/the-raj-trial">Click here to see everything scandalous that's come out in the Raj trial &gt;</a></p><p><a href="http://www.businessinsider.com/conversation-raj-ian-horowitz-markets-in-2008-and-buying-amd-on-insider-info-2011-3#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/danielle-chiesi-told-raj-geeky-2011-3Danielle Chiesi Told Raj, "You're More Charming Than Bob Moffat, The Geeky Type"http://www.businessinsider.com/danielle-chiesi-told-raj-geeky-2011-3
Mon, 14 Mar 2011 17:47:00 -0400Courtney Comstock
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ceaea0accd1d56241050000/danielle-chiesi.jpg" border="0" alt="Danielle Chiesi " /></p><p>During one conversation between Raj Rajaratnam and Danielle Chiesi, a hedge fund analyst who allegedly passed him inside information, she told Raj she thought he wasn't a "geeky type," he was charming.</p>
<p>Raj and Chiesi had been discussing her relationship with Robert Moffatt, a senior VP at IBM who was expected to play a big part in AMD's new deal, a cash injection from Mubadala or Abu Dhabi.</p>
<p>If IBM approved the use of some technology in the deal, Raj would presumably have been to expect that a huge ~$6 billion cash injection from Abu Dhabi would follow soon after, so if Chiesi could find out what Moffatt thought, Raj would want to know about it.</p>
<p>Chiesi of course knew what Moffat was thinking because she had an "<a href="http://www.businessweek.com/news/2010-08-17/ibm-s-moffat-says-chiesi-played-him-for-inside-tips.html">intimate relationship</a>" with Moffat, which he later described as her "playing him."</p>
<p>Here's what the two said on the phone about Moffat:</p>
<p><strong>Chiesi: </strong>My parents have a lake house in Candlewood and so Moffat and his daughter are coming this weekend.</p>
<p><strong>Raj: </strong>Moffat has kids?</p>
<p><strong>Chiesi: </strong>Yeah he's married and has kids. Why are you surprised?</p>
<p><strong>Raj: </strong>I thought he was single. He looks like a single guy, you know, he's got a swagger.</p>
<p><strong>Chiesi: </strong><em>No he's more like the geeky type, not charming like how you are.</em></p>
<p>Of course, she said this to the man who had just given her a big insider tip by telling her that "the fucking Arabs" would invest $6-8 billion in AMD in the fall of 2008.</p>
<p>By September 30th 2008, Raj had bounced back. He bought 25 million himself and he told Chiesi, "I'm long 25 and you know, I'm feeling the pain but they can't kill me, I'm a warrior. October's my month."</p>
<p>Raj counselled her to buy 1 million, sell 500 in AMD mere hours after he seems to have found out from Kumar that the date of the public announcement of the Abu Dhabi cash injection, which would completely re-vitalize the company, would be October 7th 2008.</p><p><a href="http://www.businessinsider.com/danielle-chiesi-told-raj-geeky-2011-3#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/wall-street-gossip-11-22-2010-11GOSSIP: Today's Wall Street Buzz in 60 Seconds (GS)http://www.businessinsider.com/wall-street-gossip-11-22-2010-11
Mon, 22 Nov 2010 17:19:39 -0500Katya Wachtel
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4ceaea0accd1d56241050000/danielle-chiesi.jpg" border="0" alt="Danielle Chiesi " /></p><p>The hedge fund world has been <a href="http://www.businessinsider.com/chip-skowron-jonathan-hollander-nicos-stephanou-ramesh-chakrapani-insider-trading-scandal-2010-11">rocked by a series of insider trading allegations</a> that saw three firms <a href="http://www.businessinsider.com/diamondback-and-level-global-hedge-funds-raided-wsj-2010-11">raided by the FBI today</a>. Two of the funds, DiamondBack and Level Global, are run by former SAC Capital traders.</p>
<p>Several "low-level" Goldmanites <a href="http://www.businessinsider.com/chip-skowron-jonathan-hollander-nicos-stephanou-ramesh-chakrapani-insider-trading-scandal-2010-11">are also implicated</a> in the scandal. No word yet on who or which unit they're from.</p>
<p>Andrew Dyson has resigned<a href="http://www.efinancialnews.com/story/2010-11-22/dyson-quits-black-rock">&nbsp;as global head of BlackRock&rsquo;s institutional asset managemen</a>t business after an "operational review."</p>
<p>A tipster tells us that about a month ago, Hank Paulson walked through the <a href="http://www.businessinsider.com/blackboard/goldman-sachs">Goldman Sachs</a> trading floor with Lloyd Blankfein. We wonder what the former CEO was telling his successor?</p>
<p>Steve Rattner's former private equity fund, <a href="http://www.businessinsider.com/steve-rattners-private-equity-fund-quadrangle-is-about-to-shut-down-2010-11">Quadrangle, will "cease to exist in its current form"</a> by next year. The firm has been battling since the pension kickback scandal last year.</p>
<p><a href="http://www.businessinsider.com/blackboard/ubs">UBS</a> told investors it has hired <a href="http://www.efinancialnews.com/story/2010-11-22/ubs-makes-1000-hires-as-rebuilds-business">1,000 new bankers</a> and traders this year.</p>
<p>A hedge-fund consultant says <a href="http://online.wsj.com/article/SB10001424052748704243904575630874142105244.html?mod=googlenews_wsj">federal agents never told her of her rights</a> when she was arrested in relation to the Galleon investigation last year. Danielle Chiesi wants to suppress statements she made to the FBI.</p>
<p>Rumors are rife that <a href="http://www.businessinsider.com/blackboard/apple">Apple</a> is going to release <a href="http://www.businessinsider.com/ipad-2-features-2010-11">a new iPad</a> in April next year. The new version will reportedly have a camera.</p>
<p>Non Wall Street Bonus</p>
<p>Leonardo Di Caprio was on the <a href="http://www.nypost.com/p/news/local/queens/leonardo_dicaprio_was_on_jfk_jet_sKaeINuk14uNwrI2wYDSkL">Delta flight that was forced to return to JFK</a> and make an emergency landing after one of it lost ones of its engines.</p><p><a href="http://www.businessinsider.com/wall-street-gossip-11-22-2010-11#comments">Join the conversation about this story &#187;</a></p>